United States/USAO filed with the U.S. Bankruptcy Court an objection to Modular Space Holdings’ Joint Prepackaged Plan of Reorganization and related Disclosure Statement.
The objection asserts, “The United States objects to the Disclosure Statement because it does not contain information adequate to allow creditors to make informed decisions about the Plan. In fact, both the Disclosure Statement and the Plan describe a confusing and contradictory process of claim treatment that, against the backdrop of expedited bankruptcy proceedings, deprives creditors of any meaningful opportunity to understand or participate in the plan process.”
In addition, “The lack of information in the Creditor List raises two serious issues. First the United States objects to the Plan because federal creditors have not been afforded adequate notice to determine possible federal interests in these bankruptcy cases and to gauge the effect of the Plan on those interests. Secondly, the creditor information that has been filed by the Debtors appears incomplete, at best, and provides very little actual notice to those claim holders whose interests are being harmed by the Plan. Moreover, there is little chance of more information being provided to claimants in theses bankruptcies because the Debtors are not required to convene a Creditors’ Meeting or to file any further statements of financial affairs or schedules if their Plan is confirmed by March 3, 2017.”
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